Impact of the Inflation Reduction Act
The Inflation Reduction Act (IRA) is the most transformational clean energy policy in history. The passage of this historic legislation has had an immediate impact long-term outlook for the U.S. solar industry.
The Last Year of Solar and Storage Growth
- In the last year, U.S. solar and storage companies have announced over $100 billion in new private sector investments.
- Solar and storage manufacturing is now surging in the United States, as 51 solar manufacturing facilities have been announced or expanded in the last year.
- New solar manufacturing facilities will invest nearly $20 billion into American communities.
- Since the IRA passed, 155 gigawatts (GW) of new production capacity has been announced across the solar supply chain. These announcements include:
- 85 GW of solar module capacity
- 43 GW of solar cells
- 20 GW of silicon ingots and wafers
- 7 GW of inverter capacity
- In addition, 65 GWh of energy storage manufacturing capacity has been announced across 14 new or expanded facilities
- Over the next 10 years, the IRA will lead to 48% more solar deployment than would otherwise be expected under a no-IRA scenario.
- By 2033, the U.S. will have installed 669 GW of total solar capacity, more than 4 times the amount installed today.
- By 2031, solar energy will produce more electricity each year than all U.S. coal-fired power plants in 2022.
- The IRA will drive an additional 160 gigawatts (GW) of solar over the next 10 years when compared to a no-IRA scenario.
- The IRA will lead to over $565 billion in new investment over the next decade, $144 billion more than under a no-IRA scenario.
- The solar industry’s annual CO2 emissions offsets will increase from 169 million metric tons (MMT) today to more than 459 MMT by 2033.
- 10 years from now, there will be enough solar power installed to power every home east of the Mississippi.
The IRA & U.S. Jobs
Over the next decade, industry employment will nearly double, from 263,000 today to 478,000 by 2033. Solar manufacturing jobs will swell to over 100,000 by 2033.
The IRA will create an additional 137,000 jobs by 2033 when compared with a no-IRA scenario.
Addressing Climate Change
Solar deployment spurred by the Inflation Reduction Act will offset an additional 665 million metric tons (MMT) of carbon emissions over the next 10 years when compared with a no-IRA scenario.
By 2033, U.S. solar installations will offset 459 MMT of CO2 annually, representing 30% of 2021 U.S. electricity sector emissions.